All Forum Posts by: Tamara Deering

@Anthony Holloway

I don't think there is anything wrong with networking at this point but don't waste their time.  Asset based loans are just that, tied to a specific asset, until you have a property under contract hard money lenders will only be able to speak in generalities.  Do your preliminary networking in social settings and you will be fine.

@Danni Catambay

Wholesalers find their deals by doing the hard work many of us don't want to do.  Cold calls, research, marketing and networking over and over again.  They knock on doors and get a lot of them slammed in their faces. They will take 100 phone calls to make one deal.

The way that a wholesaler will work with you is if you close on a deal.  You will need to buy one of there base hit deals first to show that you can perform.  The home run deals are given to their clients who have proven they can perform and close a deal.  You won't get that sort of preferential treatment until you show that you won't be wasting all their time and effort by not being able to close on the property in the time frame given.

@Aaron Nelson

Sorry about the slam on San Angelo, I'm sure it is beautiful but I don't think people from outside of Texas understand just how big the state really is.

@Dylan Snow

Your numbers look ok but I'm not sure they are realistic, this is one of those good on paper things.  San Angelo is in the middle of nowhere, literally.  You need to drive hours to get to a major city.  I think there is a college there - Howard I believe, but that is it.  I'm not sure you can get a bridge loan for a property there.  Also, I'm not sure you will be able to refinance out of the bridge.  

Plus you want to rehab the property long distance, again not sure how that will work because there is a limited work force.

If you can get this property for the discount you are looking for - again unlikely, I would try and finance it with your permanent financing.  I think the cost of money and the risk of not being able to refi at the end are too great.

@Kris L.

It is almost impossible that you will be able to close on a short sale, complete a 4 week flip and sell the property to the end buyer by the end of the year.  For all intents and purposes you have 3 weeks in November and 3 weeks in December to get this done, and I'm being optimistic about December.  The reality is that work pretty much slows down or stops altogether between Thanksgiving and the first of the year.  I would say this one is DOA, the only glimmer of hope you have is if the selling agent has the short sale approval in hand but even then it is unlikely.  Besides if you spend time chasing this long shot it cripples your chances of finding something you can complete by year end if this one doesn't work out.

@Alexander Parada

Houston as a market is a good one, Texas in general has one of the lowest unemployment rates and highest population growths in the country. This will likely continue, Houston has a diverse employment base, it's not longer strictly funded by oil.

That being said, Houston is huge and a lot of it is in flood zones.  So if ever there was a market where you need to not only do due diligence on paper but actual fly in and tour before you purchase Houston is it.  

Finally, I agree with everyone else look at cash on cash or internal rate of return not cap rate to determine the strength of your potential investments.

@Account Closed

A walking trail is not an encroachment per se unless it affects drainage so I don't think that there is a definition of too close in this case.  You may be able to contact the builder and see if he is willing to fence the lot line or split the costs with you.

@Everett Schulte

If the deal is good enough as a rental property, the end buyer can obtain financing.  Use the BP rent calculator and find out if it makes sense as a deal to the end buyer, don't forget to add your fee into the cost.  If it looks good then market it the same way that you would any other wholesale deal.  The only change you would need to make is the time it will take to close the deal, you probably can't close in a week with a borrower looking to finance.  In addition, many landlords have access to a business line of credit that will allow them to pay cash for a property quickly and refi it into a long term note after closing.  

Chances are you will be using a hard money lender for your first flip.  Attend networking meetings and meet the players, normally there are several in any given market and they will sponsor events.  Once you have a lender you like, ask for a list of their past clients and call them.  You want to ensure that the firm is reputable, and how easy and quick the draw process is in addition to getting a feel for how they are to work with in general.  Also, stay away from any lender that has a non-refundable fee to process an application, most should refund at least half of your deposit if you don't qualify.  Also, the whole fee should be applied to the loan if you do qualify.

@Aris Jimenez

It depends on what your contract said.  Was it contingent on financing and was the financing contingent on the appraisal?  Was there a clause in the special conditions stating that the property must appraise?  Do you have an option period for walking away from the deal?  If none of those are present you can still decline to purchase the property but you will likely sacrifice your earnest money.